(Reuters) -Alibaba Group Holding ( BABA ) missed analysts' estimates for quarterly sales on Friday, as lingering economic uncertainty sapped consumer spending in China and weighed on the e-commerce giant's domestic business.

Chinese consumers have sharply cut back on spending, especially on discretionary items, as the world's second largest economy struggles to pick up pace amid a property sector crisis and heightened youth job insecurity.

That has knocked retail sales, which remain pressured even as major vendors like Alibaba ( BABA ) and JD.com dole out promotions and discounts. JD.com on Thursday also missed estimates for quarterly revenue.

Alibaba ( BABA ) is also facing stiff competition from discount-based retailers such as PDD Holdings' Pinduoduo and ByteDance-owned Douyin, which have wooed thrifty shoppers with rock-bottom prices on everything from headphones to sweaters.

Alibaba ( BABA ) reported revenue of 236.50 billion yuan ($32.72 billion) for the second quarter ended Sept. 30, compared with analysts' average estimate of 240.17 billion yuan, according to data compiled by LSEG.

($1 = 7.2275 Chinese yuan renminbi)

(Reporting by Deborah Sophia in Bengaluru and Casey Hall in Shanghai; Editing by Sriraj Kalluvila)